
During a restrained trading session, Dow Jones, S&P 500, and the Nasdaq futures displayed minor gains in the after-hours market. This development follows remarks by Federal Reserve Chairman Jerome Powell about the insufficient progress toward reaching this year’s 2% inflation goal.
In his statement, Powell conveyed that the progress towards this goal has not met expected standards, signaling to investors that the Federal Reserve may not expedite the pace of tapering its asset purchases. Globally, financial markets have been closely observing the Federal Reserve’s stance, working to anticipate any potential policy changes.
As a result of Powell’s comments, speculations about potential upcoming actions by the Federal Reserve have intensified, stirring uncertainty among investors. Amidst these developments, futures tied to the Dow Jones Industrial Average rose slightly, as did futures related to the S&P 500 and the Nasdaq Composite.
With the inflation target not being met, major economies are exercising caution, and the financial market is expected to remain volatile until there is more certainty regarding the Federal Reserve’s next course of action. Investors and traders are urged to stay informed about the latest economic news, which could significantly impact market movements.
The primary indexes remained largely unaffected despite these comments, staying below their 50-day moving averages. Minor fluctuations were observed, suggesting some sensitivity to the Federal Reserve Chair’s statements. The Dow Jones Industrial Average showed a mere 0.20% increase from the previous day’s close, while tech stocks such as the Nasdaq Composite gained 0.80%.
The S&P 500 rose more moderately, displaying an increase of 0.30%. These varied responses highlighted mixed sentiments within the marketplace regarding changing economic conditions. Fixed-income markets also reacted to Powell’s words, as highlighted by a slight dip in Treasury yields.
Experts suggested this could be due to investors’ shifting towards safe assets amidst the uncertainties.
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